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FSB chairman fails to see impact of regulation cuts
Regulation cuts will have no tangible impact on small firms at all as they are outdated and unused, according to John Walker, national chairman of the Federation of Small Businesses.
His comments followed Vince Cable’s announcement of deregulation plans about the retail sector from the Red Tape Challenge.
Mr Walker said: “Businesses are losing confidence in the government’s commitment to deregulate. It is evident that hefty regulatory changes in pensions, flexible working and maternity and paternity, as well as changes from Europe, are still going to hit small firms hard.”
Mr Walker continued: “We urge the government to deal with the big regulatory burdens as well as tinkering with the smaller ones.”
According to Mr Walker, following disappointing GDP figures of the second quarter, the government’s plans for growth need a real boost in the short term.
He said: “Plans to bring about a ‘culture change’ in the regulatory environment are all very well, but will not inject confidence into the economy now. It also certainly won’t help when the really burdensome regulations come in over the next few years.”
Mr Walker said: “What businesses need is a genuine deregulatory agenda that frees small firms up to expand and grow.”
Jonathan Fry, director of Jonathan Fry & Co Ltd, said: “A lot of time the small business spent is driven by the regulation. Some of them are really unrealistic and arguable for small businesses. We have to realise that we are competing in the global economy. Some alliances we compete against don’t have such standard as we have.”
